SAO PAULO: Green energy and food security are two of the main sectors in which Saudi Arabia is interested in investing in Brazil, the Kingdom’s investment minister said on Monday.
Khalid Al-Falih, who was speaking at the Brazil-Saudi Arabia Investment Forum at the Federation of Industries of the State of Sao Paulo, also cited the financial, automotive, agricultural, transport and logistics, infrastructure, ecotourism and entertainment sectors as other areas of interest.
“With the evolution of the Global South coupled with shared values between Brazil and Saudi Arabia, aligned strategic interests and strong private sectors, which we have so much respect for, why couldn’t we become a top-five investor in each other’s economy?” he said.
“I believe that we can and should, and that it’s possible. This is the objective of each member of our delegation, both the public and private sectors.
“This was the guidance we received from our leadership with this historic mission that we’re carrying out.”
The Saudi delegation, comprising around 100 people, will visit six other Latin American countries until Aug. 9: Argentina, Uruguay, Paraguay, Chile, Costa Rica and Panama.
Al-Falih said Brazil and Saudi Arabia have many commonalities despite geographic distance.
“We’re two proud G20 members and major energy producers. We’re well positioned to be strategic partners, being the economic leaders of our respective regions,” he added.
When speaking about climate change, he said both countries’ goals of net zero carbon emissions are also closely aligned.
“Brazil’s long-term goal is to have zero emissions by 2050 and to reduce emissions by 50 percent by 2030, and the Kingdom intends to reach zero emissions by 2060, which will be quite challenging for Saudi Arabia considering that we’re a large producer of hydrocarbons and a very industrialized country,” Al-Falih added.
“We don’t have the blessings of the Amazon to absorb our carbon emissions, but we’re looking for ways to do it.”
He mentioned a Saudi green hydrogen project that has more than $10 billion in investments, and that the Kingdom wants to replicate in Brazil.
“We also launched green initiatives in Saudi Arabia and the Middle East to increase renewable energy and the circular economy, in addition to the project to plant 50 billion trees, 10 billion of them in Saudi Arabia,” he said.
The Kingdom has also been advancing in the automotive sector, and aims to produce half a million electric cars per year, for which investments will be needed in batteries and other materials, Al-Falih said.
Saudi Arabia is also seeking to become a hub for food security in the region, and wants to invest in Brazilian agricultural production and continue to be a major supplier of fertilizers, he added.
“In order to do this, we need a strong transport and logistics sector, considering Brazil’s vast territory and economic scale,” he said.
“This is necessary to ensure that everything runs smoothly, especially in the global supply chain, for commodities and imported products. An improvement in infrastructure will lower Brazil’s logistics costs.”
Saudi Arabia intends to attract 100 million tourists by 2030, and for that it has been investing in ecotourism and entertainment, and sees Brazil as a reference in these sectors, Al-Falih said.
He added that Hotel Fasano, a high-end Brazilian hotel chain, has signed a memorandum of understanding to invest in one or two projects in Saudi Arabia.
The Kingdom also wants to invest in Brazilian biofuels and biochemicals, and Al-Falih said it sees great potential in this market in Latin America.
“What I’ve mentioned here are just a few of the many sectors that we’ve found great potential in, but our interest and support are extended to all opportunities for large, medium and small companies, as well as innovative startups,” he added.
Al-Falih also mentioned Saudi interest in the pharmaceutical, biotechnology, agrotechnology and aerospace industries, and said he will visit the headquarters of Brazilian plane manufacturer Embraer.
Geraldo Alckmin, Brazil’s vice president and minister of development, industry and commerce, also spoke at the event.
He recalled that Arabs have a strong presence in Brazilian culture and in the state of Sao Paulo, and said his name might have an Arab origin.
He added that there are great opportunities for partnerships and investments between the two countries in the petrochemicals, energy, automotive, ethanol, sustainable aviation fuel and infrastructure sectors.
Alckmin said Brazil has important lithium reserves, and has just exported it for the first time.
“Now we have the challenge of taking the most important step, which is the production of batteries for electric cars,” he added.
Brazil has been developing itself with stability and predictability, Alckmin said. “Brazil is growing, its GDP (gross domestic product) has grown, unemployment has dropped, the real (the country’s currency) has appreciated, the stock market has risen, but this should spur us on to make even more reforms and pursue more economic efficiency,” he said, adding that tax reform will stimulate Brazilian industry.
On the subject of deforestation, Alckmin said: “We can proudly record that deforestation fell by more than 50 percent in this first half (of this year). Brazil is committed to the Amazon rainforest and to combating climate change.”
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